Alabama has been one of the more recent states to implement assistance programs for unemployed homeowners and those who are suffering financial distress through the Hardest Hit Program as loan assistance programs may provide the opportunities for homeowners who fear foreclosure to have monthly assistance offered for up to 12 months or $15,000 per household.
According to the Alabama Hardest Hit Fund Website, homeowners are eligible for this particular state-specific plan if they are able to receive unemployment compensation benefits and meets certain household income and home loan requirements, but it’s hoped that in one of the states where unemployment and a decrease in home values have been particularly troubling for homeowners, this will prevent future foreclosures for Alabama residents who are attempting to ride out economic difficulties that are still being felt from the recession.
Numerous other states have also proposed plans to help homeowners find the aid they need to avoid loss of their homes and these state-specific plans have been implemented in some areas but are still not at their full strength in other states. Ideally, the Hardest Hit Program will allow homeowners the option to keep their home by receiving assistance on a month-to-month basis for a set period of time which will allow these homeowners to avoid missing payments on their mortgage and falling into the foreclosure process as a result.
Each state may differ on the total amount of assistance homeowners may acquire or qualifications that must be met before Hardest Hit Fund assistance will be offered, but it’s hoped that these plans which may offer aid to homeowners for one or two years, will prevent more widespread foreclosures in areas that are particularly affected by troubles related to unemployment and devaluation in home prices.
Alabama residents were recently made aware of this program’s implementation and may consult the program’s website for information on finding mortgage assistance from the HHF, but homeowners do still have options through traditional or proprietary home loan modification plans that may be able to lower their monthly mortgage payment obligation through programs like the Making Home Affordable initiative.